On February 17, 2011, the U.S. Senate approved legislation that would repeal the expanded IRS Form 1099 information-reporting requirements imposed by healthcare reform law. Section 9006 of the Patient Protection and Affordable Care Act (“PPACA”) currently requires that certain payments of $600 or more to corporations be disclosed on the IRS Form 1099 starting in 2012. The repeal of this requirement was part of a broader bill, S. 223, known as the FAA Air Transportation Modernization and Safety Improvement Act.
On the same day, the House Ways and Means Committee also approved a bill which seeks to repeal the PPACA 1099 information-reporting requirements. In addition to reducing these requirements, H.R. 705 (also known as the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayment Act of 2011) increases the amount of excess advance payments of the premium assistance credit that a taxpayer must repay under the Sec. 36B(f)(2) of the Internal Revenue Code for tax years ending after Dec. 31, 2013. The premium assistance tax credits were enacted as part of the 2010 healthcare reform legislation to help lower-income individuals acquire affordable health insurance coverage.
The U.S. House of Representatives is expected to vote in March 2011.